S&P reviews Acosta

Standard & Poor's said it placed all of its ratings on Acosta Inc., including its B+ corporate credit rating, on CreditWatch with negative implications.

Total debt outstanding as of April 30 was about $2.2 billion.

The CreditWatch negative placement follows Acosta's July 29 announcement that it signed a definitive agreement to be acquired by Carlyle Group, which will purchase the full ownership stake of funds affiliated with its existing majority owner, Thomas H. Lee Partners.

Although terms of the transaction and future capitalization plans have not been released, S&P said it believes the proposed transaction could result in a meaningful increase in debt and credit measure deterioration.

The agency expects the current management team to remain in place and continue to have a meaningful equity stake in the company.

The transaction is expected to close in the third quarter of 2014.

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